Friday, August 14, 2015

8/14/15 Investor sentiment deteriorates

I think credit spreads are the best indication of investor sentiment. The spreads were a lot worse 3 years ago. But they are widening and are at where they were before the great recession. The financial situation appears fine. 2 year swap rates are not elevated. The 10-2 yield curve is steep. Economic conditions have not deteriorated enough to be very concerned but enough to monitor frequently.